Category

Industrials

Daily Brief Industrials: Toshiba Corp, Lasertec Corp, ACCO Brands, CRB Commodity Index and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Two Bits of Non-Bullish Toshiba News
  • Lasertec (6920 JP): Accumulate for the Long Term
  • ACCO: Adjusting for Macroenvironment
  • The Commodity Report #71

Two Bits of Non-Bullish Toshiba News

By Travis Lundy

  • On Friday, Toshiba investors got two bits of news which have been taken as non-bullish.
  • Affiliate and former subsidiary Kioxia (6600 JP) announced it would cut wafer input volume by 30% starting in October, and Toshiba’s announcement on the Privatisation process status implied some delay.
  • Today the shares are getting hit vs Peers. It’s still a problem of lots of moving parts. 

Lasertec (6920 JP): Accumulate for the Long Term

By Scott Foster

  • The shares are down 58% from their January high. Our 3-year forecast brings valuations down to levels not seen since FY Jun-18.
  • The great surge in orders is coming to an end, but EUV lithography and SiC power devices should keep demand for Lasertec’s mask inspection systems at high levels.
  • The severity of the emerging semiconductor down-cycle and global recession remain to be seen, but the company’s long-term potential warrants another look. 

ACCO: Adjusting for Macroenvironment

By Hamed Khorsand

  • The business climate has not improved for Acco Brands (ACCO) in Europe since the Company reported second quarter results, and thus could result in lower than expected third quarter numbers
  • The macroenvironment has been volatile in a quarter dependent on back-to-school sales and more people working from their offices. 
  • We are updating our earnings model for the rest of the year. Our third quarter sales estimate is now $517.1 million

The Commodity Report #71

By The Commodity Report

  • We expect the oil crisis to worsen once economic activity resumes again. Till then some months will probably pass.
  • Nevertheless, the industry hasn’t increased production significantly enough, and the SPR release by the Biden administration veiled the actual grim picture in the oil market.
  • Those stories from Bloomberg show how relaxed the sentiment seems to be again. I have the feeling that this sentiment won’t age well at all.

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Daily Brief Industrials: Toshiba Corp, Lasertec Corp, ACCO Brands, CRB Commodity Index and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Two Bits of Non-Bullish Toshiba News
  • Lasertec (6920 JP): Accumulate for the Long Term
  • ACCO: Adjusting for Macroenvironment
  • The Commodity Report #71

Two Bits of Non-Bullish Toshiba News

By Travis Lundy

  • On Friday, Toshiba investors got two bits of news which have been taken as non-bullish.
  • Affiliate and former subsidiary Kioxia (6600 JP) announced it would cut wafer input volume by 30% starting in October, and Toshiba’s announcement on the Privatisation process status implied some delay.
  • Today the shares are getting hit vs Peers. It’s still a problem of lots of moving parts. 

Lasertec (6920 JP): Accumulate for the Long Term

By Scott Foster

  • The shares are down 58% from their January high. Our 3-year forecast brings valuations down to levels not seen since FY Jun-18.
  • The great surge in orders is coming to an end, but EUV lithography and SiC power devices should keep demand for Lasertec’s mask inspection systems at high levels.
  • The severity of the emerging semiconductor down-cycle and global recession remain to be seen, but the company’s long-term potential warrants another look. 

ACCO: Adjusting for Macroenvironment

By Hamed Khorsand

  • The business climate has not improved for Acco Brands (ACCO) in Europe since the Company reported second quarter results, and thus could result in lower than expected third quarter numbers
  • The macroenvironment has been volatile in a quarter dependent on back-to-school sales and more people working from their offices. 
  • We are updating our earnings model for the rest of the year. Our third quarter sales estimate is now $517.1 million

The Commodity Report #71

By The Commodity Report

  • We expect the oil crisis to worsen once economic activity resumes again. Till then some months will probably pass.
  • Nevertheless, the industry hasn’t increased production significantly enough, and the SPR release by the Biden administration veiled the actual grim picture in the oil market.
  • Those stories from Bloomberg show how relaxed the sentiment seems to be again. I have the feeling that this sentiment won’t age well at all.

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Daily Brief Industrials: SATS and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Weekly Deals Digest (02 Oct) – SATS, Jinke Smart, EVOC, Fengxiang, Tassal, MACA, Growatt, CALB

Weekly Deals Digest (02 Oct) – SATS, Jinke Smart, EVOC, Fengxiang, Tassal, MACA, Growatt, CALB

By Arun George


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Daily Brief Industrials: SATS and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Weekly Deals Digest (02 Oct) – SATS, Jinke Smart, EVOC, Fengxiang, Tassal, MACA, Growatt, CALB

Weekly Deals Digest (02 Oct) – SATS, Jinke Smart, EVOC, Fengxiang, Tassal, MACA, Growatt, CALB

By Arun George


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Daily Brief Industrials: Monadelphous, Toyo Construction and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: S&P/ASX, China A50, SET50, Bilibili, Leapmotor, Onewo, CALB
  • Toyo Construction (1890 JP) – There’s Nuance in Them Thar Press Releases

Index Rebalance & ETF Flow Recap: S&P/ASX, China A50, SET50, Bilibili, Leapmotor, Onewo, CALB

By Brian Freitas

  • Last week we had the implementation of the first two tranches of the Nikkei 225 (NKY INDEX) rebalance with the third tranche to be implemented at the close on Monday.
  • Thursday saw the NIFTY indices implementation while Friday marked the end of the review period for the December rebalance of the Hang Seng family of indices.
  • There were large inflows to China, Taiwan, Korea and Hong Kong ETFs during the week while there were some outflows from Japan.

Toyo Construction (1890 JP) – There’s Nuance in Them Thar Press Releases

By Travis Lundy

  • On Friday, post-close, there was a flurry of excitement as YFO put out a press release amending the start date of the planned Tender Offer to early November.
  • Not long after, there was another release by Toyo Construction (1890 JP) itself. 
  • You have to read both for what they are. And as they say…. Get your programs here!

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Daily Brief Industrials: Monadelphous, Toyo Construction and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Index Rebalance & ETF Flow Recap: S&P/ASX, China A50, SET50, Bilibili, Leapmotor, Onewo, CALB
  • Toyo Construction (1890 JP) – There’s Nuance in Them Thar Press Releases

Index Rebalance & ETF Flow Recap: S&P/ASX, China A50, SET50, Bilibili, Leapmotor, Onewo, CALB

By Brian Freitas

  • Last week we had the implementation of the first two tranches of the Nikkei 225 (NKY INDEX) rebalance with the third tranche to be implemented at the close on Monday.
  • Thursday saw the NIFTY indices implementation while Friday marked the end of the review period for the December rebalance of the Hang Seng family of indices.
  • There were large inflows to China, Taiwan, Korea and Hong Kong ETFs during the week while there were some outflows from Japan.

Toyo Construction (1890 JP) – There’s Nuance in Them Thar Press Releases

By Travis Lundy

  • On Friday, post-close, there was a flurry of excitement as YFO put out a press release amending the start date of the planned Tender Offer to early November.
  • Not long after, there was another release by Toyo Construction (1890 JP) itself. 
  • You have to read both for what they are. And as they say…. Get your programs here!

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Daily Brief Industrials: Atlantia SpA and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Edizione & KKR/​Atlantia: All Clearances Obtained

Edizione & KKR/​Atlantia: All Clearances Obtained

By Jesus Rodriguez Aguilar

  • Edizione/Blacktone have obtained clearances from Bank of Italy and Bank of Spain regarding their voluntary takeover offer for Atlantia. Once the Consob approves the prospectus the offer can be launched.
  • The offer period should start in October and should be completed after 40 working days, with settlement by the end of November, and delisting by the end of the year.
  • Gross spread is 1.13%, 7.06% annualised return assuming settlement by 30 November. Long ATL IM.

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Daily Brief Industrials: Atlantia SpA and more

By | Daily Briefs, Industrials

In today’s briefing:

  • Edizione & KKR/​Atlantia: All Clearances Obtained

Edizione & KKR/​Atlantia: All Clearances Obtained

By Jesus Rodriguez Aguilar

  • Edizione/Blacktone have obtained clearances from Bank of Italy and Bank of Spain regarding their voluntary takeover offer for Atlantia. Once the Consob approves the prospectus the offer can be launched.
  • The offer period should start in October and should be completed after 40 working days, with settlement by the end of November, and delisting by the end of the year.
  • Gross spread is 1.13%, 7.06% annualised return assuming settlement by 30 November. Long ATL IM.

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The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

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  • ✓ Events & Webinars

Daily Brief Industrials: SATS, Biffa, WCP, AKR Corporindo, Southwest Airlines Co and more

By | Daily Briefs, Industrials

In today’s briefing:

  • SATS to Buy Worldwide Flight Services (WFS) As Private Equity Exits
  • SATS Agrees to Acquire WFS for an EV of S$3.1 Billion
  • Biffa Accepts Lowered Bid from Energy Capital Partners
  • WCP IPO Trading – Peer Correction Means Price Cut Still Wasn’t Enough
  • AKR Corporindo (AKRA IJ) – Multiple Drivers Ahead
  • Southwest Airlines: Improving Airline Macro & Other Drivers

SATS to Buy Worldwide Flight Services (WFS) As Private Equity Exits

By Brian Freitas

  • SATS (SATS SP) has announced that it is buying Worldwide Flight Services (WFS) from an affiliate of Cerberus Capital Management at an Enterprise Value of €2.25bn (S$3.107bn).
  • The cash consideration is €1.187bn (S$1.639bn) and will likely be financed by an equity fund raising. This could be a rights issue and could be combined with a private placement.
  • Expect the stock to drop once it resumes trading. A significant drop from current levels could provide a buying opportunity as the rights issue could be backstopped.

SATS Agrees to Acquire WFS for an EV of S$3.1 Billion

By Arun George

  • SATS (SATS SP) agreed to acquire Worldwide Flight Services (WFS), the world’s largest air cargo handling firm, from Cerberus Capital for a cash consideration of S$1,639 million. 
  • The base funding plan is based on a S$1.7 billion equity raise. The uncertain structure and timing of the equity raise will be a short-term overhang. 
  • The acquisition is conditional on shareholder and regulatory approvals. Assuming no synergies, our pro-forma price per share is S$4.97, a 28.5% upside to the last close.

Biffa Accepts Lowered Bid from Energy Capital Partners

By Jesus Rodriguez Aguilar

  • ECP lowers its initial offer to 410p/share in cash plus the final dividend of 4.69p/share (28% premium, implied equity value is €1,269 million, implied EV is €1,847 million).
  • The offer represents 1.2x EV/Fwd revenue, 8.3x EV/Fwd EBITDA and 32.1x Fwd P/E. Suez was taken at similar multiples: 1.5x, 8.1x and 27.4x respectively. My updated fair value estimate (DCF-based) is 410.6p.
  • The equity value prior to approach was undemanding. The offer price seems fair. Gross spread (including final dividend) is 2.1%. Reiterate Long BIFF LN.

WCP IPO Trading – Peer Correction Means Price Cut Still Wasn’t Enough

By Sumeet Singh

  • WCP raised around US$314m via selling a mix of primary and secondary shares in its Korean IPO.
  • WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries.
  • In this note, we will talk about the demand for the deal and other trading dynamics.

AKR Corporindo (AKRA IJ) – Multiple Drivers Ahead

By Angus Mackintosh

  • AKR Corporindo (AKRA IJ) continues to see strong sales momentum in July and August after releasing a strong set of 1H2022 results previously with strong momentum expected to year-end.
  • Both petroleum distribution and chemical distribution are seeing strong tailwinds and its gas station business should be a beneficiary of the fuel price hike.
  • AKR Corporindo‘s JIIPE estate booked a large 37-hectare plot sale in August with a potential for more smelter-related buyers to come. Valuations look fair but there are potential catalysts ahead.

Southwest Airlines: Improving Airline Macro & Other Drivers

By Baptista Research

  • Southwest Airlines delivered a positive set of results in the quarter, surpassing Wall Street expectations on all counts.
  • The rise in demand and limited capacity led to a favourable yield environment and recorded operating revenues of $6.7 billion for the quarter.
  • Despite increasing fuel and inflationary cost pressures, the revenue performance resulted in quarterly net profitability, excluding special items, of $825 million.

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Daily Brief Industrials: SATS, Biffa, WCP, AKR Corporindo, Southwest Airlines Co and more

By | Daily Briefs, Industrials

In today’s briefing:

  • SATS to Buy Worldwide Flight Services (WFS) As Private Equity Exits
  • SATS Agrees to Acquire WFS for an EV of S$3.1 Billion
  • Biffa Accepts Lowered Bid from Energy Capital Partners
  • WCP IPO Trading – Peer Correction Means Price Cut Still Wasn’t Enough
  • AKR Corporindo (AKRA IJ) – Multiple Drivers Ahead
  • Southwest Airlines: Improving Airline Macro & Other Drivers

SATS to Buy Worldwide Flight Services (WFS) As Private Equity Exits

By Brian Freitas

  • SATS (SATS SP) has announced that it is buying Worldwide Flight Services (WFS) from an affiliate of Cerberus Capital Management at an Enterprise Value of €2.25bn (S$3.107bn).
  • The cash consideration is €1.187bn (S$1.639bn) and will likely be financed by an equity fund raising. This could be a rights issue and could be combined with a private placement.
  • Expect the stock to drop once it resumes trading. A significant drop from current levels could provide a buying opportunity as the rights issue could be backstopped.

SATS Agrees to Acquire WFS for an EV of S$3.1 Billion

By Arun George

  • SATS (SATS SP) agreed to acquire Worldwide Flight Services (WFS), the world’s largest air cargo handling firm, from Cerberus Capital for a cash consideration of S$1,639 million. 
  • The base funding plan is based on a S$1.7 billion equity raise. The uncertain structure and timing of the equity raise will be a short-term overhang. 
  • The acquisition is conditional on shareholder and regulatory approvals. Assuming no synergies, our pro-forma price per share is S$4.97, a 28.5% upside to the last close.

Biffa Accepts Lowered Bid from Energy Capital Partners

By Jesus Rodriguez Aguilar

  • ECP lowers its initial offer to 410p/share in cash plus the final dividend of 4.69p/share (28% premium, implied equity value is €1,269 million, implied EV is €1,847 million).
  • The offer represents 1.2x EV/Fwd revenue, 8.3x EV/Fwd EBITDA and 32.1x Fwd P/E. Suez was taken at similar multiples: 1.5x, 8.1x and 27.4x respectively. My updated fair value estimate (DCF-based) is 410.6p.
  • The equity value prior to approach was undemanding. The offer price seems fair. Gross spread (including final dividend) is 2.1%. Reiterate Long BIFF LN.

WCP IPO Trading – Peer Correction Means Price Cut Still Wasn’t Enough

By Sumeet Singh

  • WCP raised around US$314m via selling a mix of primary and secondary shares in its Korean IPO.
  • WCP designs, manufactures, and sells separators, which are one of the four core materials for secondary Lithium-ion batteries.
  • In this note, we will talk about the demand for the deal and other trading dynamics.

AKR Corporindo (AKRA IJ) – Multiple Drivers Ahead

By Angus Mackintosh

  • AKR Corporindo (AKRA IJ) continues to see strong sales momentum in July and August after releasing a strong set of 1H2022 results previously with strong momentum expected to year-end.
  • Both petroleum distribution and chemical distribution are seeing strong tailwinds and its gas station business should be a beneficiary of the fuel price hike.
  • AKR Corporindo‘s JIIPE estate booked a large 37-hectare plot sale in August with a potential for more smelter-related buyers to come. Valuations look fair but there are potential catalysts ahead.

Southwest Airlines: Improving Airline Macro & Other Drivers

By Baptista Research

  • Southwest Airlines delivered a positive set of results in the quarter, surpassing Wall Street expectations on all counts.
  • The rise in demand and limited capacity led to a favourable yield environment and recorded operating revenues of $6.7 billion for the quarter.
  • Despite increasing fuel and inflationary cost pressures, the revenue performance resulted in quarterly net profitability, excluding special items, of $825 million.

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  • ✓ Personalised Alerts
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